Blockchain Revolution

Principle: The economy works best when it works for everyone. That means lowering the barriers to participation. It means creating platforms for distributed capitalism, not just a redistributed capitalism.

Problem to Be Solved: The first era of the Internet created many wonders for many people. But as we have pointed out, a majority of the world’s population is still excluded—not just from access to technology but also from access to the financial system and economic opportunity. Moreover, the promise that this new communications medium would bring prosperity to all has rung hollow. Yes, it helped companies in the developed world provide jobs for millions in the emerging economies. It lowered the barriers to entry for entrepreneurs and gave the disadvantaged access to opportunities and basic information.

That’s not enough. There are still two billion⁴⁹ people without a bank account, and in the developed world, prosperity is actually declining as social inequality continues to grow. In developing economies, mobile is often the only affordable means of connecting. Most financial institutions have mobile payment apps that combine cameras and QR codes. However, the fees needed to support these intermediaries make micropayments impractical. Consumers at the bottom of the pyramid still can’t afford the minimum account balances, minimum payment amounts, or transaction fees to use the system. Its infrastructure costs make micropayments and microaccounts unfeasible.